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Impact of Structural Change in Education, Industry and Infrastructure on Income Distribution in Sri Lanka

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Author Info
Ramani Gunatilaka
Duangkamon Chotikapanich ()
Brett Inder ()
Abstract

Income inequality increased in Sri Lanka following trade liberalization in 1977. This study applies a semi-parametric method to investigate whether structural changes in education, industry and infrastructure access underlay the change in the distribution. The study finds that while the concentration of people shifted towards higher income ranges at every stage in the distribution between 1985 and 2002, changes in access to infrastructure triggered much of the shift. Higher levels of educational attainment also had an impact. But the middle classes appear to have benefited disproportionately more from the provision of education and infrastructure services than did the poor. The analysis recommends that such services are targeted more effectively towards those in the poorest income deciles to enable them to move out of poverty to higher income ranges.

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File URL: http://www.buseco.monash.edu.au/depts/ebs/pubs/wpapers/2006/wp21-06.pdf
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Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 21/06.

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Length: 40 pages
Date of creation: Nov 2006
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Handle: RePEc:msh:ebswps:2006-21

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Related research
Keywords: Income inequality; Sri Lanka; education; infrastructure; kernel density decomposition;

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Summers, Robert, 1973. "International Price Comparisons Based Upon Incomplete Data," Review of Income and Wealth, Blackwell Publishing, vol. 19(1), pages 1-16, March.
  2. Isenman, Paul, 1980. "Basic needs: The case of Sri Lanka," World Development, Elsevier, vol. 8(3), pages 237-258, March. [Downloadable!] (restricted)
  3. Barrett, Garry F & Crossley, Thomas F & Worswick, Christopher, 2000. "Consumption and Income Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 76(233), pages 116-38, June.
    Other versions:
  4. Bhalla, Surjit S & Glewwe, Paul, 1986. "Growth and Equity in Developing Countries: A Reinterpretation of the Sri Lankan Experience," World Bank Economic Review, Oxford University Press, vol. 1(1), pages 35-63, September.
  5. Philippe Van Kerm, 2003. "Adaptive kernel density estimation," United Kingdom Stata Users' Group Meetings 2003 15, Stata Users Group. [Downloadable!]
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  6. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
    Other versions:
  7. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465. [Downloadable!]
  8. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September. [Downloadable!] (restricted)
  9. D'Ambrosio, Conchita, 2001. "Household Characteristics and the Distribution of Income in Italy: An Application of Social Distance Measures," Review of Income and Wealth, Blackwell Publishing, vol. 47(1), pages 43-64, March. [Downloadable!] (restricted)
  10. Deaton, A. & Grosh, M., 1998. "Consumption," Papers 191, Princeton, Woodrow Wilson School - Development Studies.
  11. Cameron, Lisa A., 2000. "Poverty and inequality in Java: examining the impact of the changing age, educational and industrial structure," Journal of Development Economics, Elsevier, vol. 62(1), pages 149-180, June. [Downloadable!] (restricted)
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